MANAGEMENT

Detailed explanation-1: -T/F The objective of inventory management is to minimize holding costs. False. The objective of inventory management is to minimize total cost, which includes ordering costs and sometimes purchase costs (e.g. quantity discount models).

Detailed explanation-2: -One of the main objectives of inventory management is to ensure you are always having material available whenever the production department needs them ensuring that production is not stopped or slowed down due to a lack of resources.

Detailed explanation-3: -The goal of inventory management is to minimize the cost of holding inventory by helping you know when it’s time to replenish products or buy more materials to manufacture them. This helps you maintain optimal inventory levels and minimize costs. Different types of inventory you’ll manage are: Raw goods.

Detailed explanation-4: -True, inventory control is one part of minimizing holding costs and potential stock-outs.

Detailed explanation-5: -The essence of reducing the cost of inventory is inventory reduction. The less you have, the less your costs will be. And obsolete stock is the most costly inventory you can have. If you already have a lot of obsolete stock, you can try product bundling to sell more of it, or try discounting them individually.